No Credit Check Loans
Applying for a loan at OppLoans does NOT affect your FICO® credit score!
For many of us, there will come a time when we feel like we need to take out a loan. Why? Because, unfortunately, most people are not prepared for a financial emergency:
- Half of Americans have non-prime credit scores
- 57 percent have less than $1,000 in their savings account
- Nearly eight out of 10 live paycheck-to-paycheck
When an unexpected expense like a car repair or surprise medical bill hits, searching for a loan may seem like your best option. But borrowing money is never a simple decision, especially if you have bad credit.
You may have heard that checking your credit actually hurts your credit. This can be confusing and frustrating, especially if you need to borrow money. You may be asking, “I have bad credit, and I need to borrow money, but won’t checking my credit make my credit worse?”
For the many Americans who need to borrow money but don’t want their credit “dinged” any further, they may find themselves looking for a financial product called a “No Credit Check Loan.”
So what is it?
What is a No Credit Check Loan?
A No Credit Check Loan is typically a type of loan in which a lender determines the “creditworthiness” of a potential borrower without conducting a “hard” credit check.
This can be appealing to potential borrowers who are concerned about the condition of their credit. A “no credit check loan” may seem like a good fast cash option but there are always risks. Educating yourself is the best way to make the safest borrowing decision for you.
The world of No Credit Check Loans
If you’re looking for a No Credit Check Loan, chances are you believe you have bad credit. So do you? There’s a way to find out.
Maybe you’ve had credit cards before and had trouble managing them. Maybe you missed some payments, maxed out the cards, or just got way over your head into debt. This could leave you afraid to even check your credit score.
The keys to understanding your credit (and how to improve it) is to know your credit score and understand what’s on your credit report.
Why you should check your credit score
Don’t be scared to check your credit score. It’s an important number and knowing your credit score (even if it’s bad) will have benefits. Here’s why you should check your credit score.
- You’ll know how you measure up.
- Learning your credit score will tell you where you fall on the spectrum of credit users. Credit scores fall on a range from 300 to 850. You might not have a credit score of 800, but then, neither do 99% of other credit users.
- Credit improves slowly. If you have no credit, it could take three to six months of credit usage to bring your credit file to a scorable level. The sooner you start, the sooner you’ll see results!
- Something could be wrong. If your credit score is wildly higher or lower than what would expect, that could indicate there’s an error in the calculation or you’ve been a victim of identity theft. Knowing your credit score is the first step in identifying if something is amiss.
- You can use your credit score to save money! The higher your credit score, the lower interest you can expect to pay on loans, mortgages and other major financial decisions. When you know your score, you can improve it and use it to secure the lowest rates available to you.
How to Check Your Credit Score
- Check your credit card statement. Many of the major credit card companies offer your credit score on your monthly statement which you can usually access online.
- Buy your score directly at MyFico.com.
- Get your “free” credit score from subscription sites like FreeCreditScore.com or Credit.com, (“Free” can sometimes mean signing up for a monthly subscription that includes a free trial period. Always make sure you understand what you’re signing up for.)
Why you should request your credit report
- It’s free and you’re entitled to a copy at least once a year.
- If something’s wrong, you’ll know. Check for suspicious, outdated and incorrect information. This can tip you off to something as serious as identify theft.
- Because others are: New employers, landlords and others will often check your credit reports to determine your creditworthiness. You will want to be just as informed as they are—especially if something is incorrect!
Credit Must Knows:
- The 2017 average credit card balance was $6,354
- The 2017 average credit score was 700
- 15% of families spend more than they make each month.
- 43% of Americans spend more than they make monthly and use credit cards to cover the gap.
- In 2018, total credit card debt reached $810 billion.
How to Request Your Credit Report
- Visit wwww.AnnualCreditReport.com. (Annual Credit Report is the only government authorized website where you’re entitled to access a credit report annually for free.)>
- Enter your personal information like name, address, birthdate, social security number and other items.
- Request the reports you want from either Equifax, Experian or TransUnion.
- Verify your request
- Print out and safely store your information
| Range | Quality |
| 800-850 | Exceptional Credit |
| 740-789 | Very Good Credit |
| 670-739 | Good Credit |
| 580-669 | Fair Credit |
| 300-579 | Very Poor Credit |
(Source: Experian)
If you have weak credit (typically a FICO score of 620 or below), it can be difficult for you to get a loan from a bank or even from most online lenders. A no-credit-check loan from a direct lender can then be very attractive.
But you need to take several things into account before making that final decision. Spend a little time doing research, and you’ll be much better off in the long run. Avoid predatory loans from payday and title lenders at all costs. If you don’t, you may go from “no credit” to “no paycheck” or, even worse, “no car.”
Credit Must Knows: Average Credit Card Debt by income level according to The Federal Reserve
- $24,999 a year or less: $3,000 avg credit card debt
- $25,000–$44,999 a year: $3,900 avg credit card debt
- $45,000–$69,999 a year: $4,900 avg credit card debt
- $70,000–$114,999 a year: $5,800 avg credit card debt
- $115,000–$159,999 a year: $8,300 avg credit card debt
- $160,000 a year or more: $11,200 avg credit card debt
Why does checking credit matter?
It’s important for borrowers to understand credit checks because, generally, each time a lender or financial institution checks your credit, your score is actually lowered. It doesn’t seem fair, does it? You need to borrow money, but to borrow money, a lender checks your credit—which can ding your credit score, making it harder to borrow. What’s up with that?
Many traditional lenders and financial institutions perform what’s called a “hard credit inquiry”—or hard credit check—when they review your credit. This means they’re judging your credit score, >credit report and credit history to determine how risky it will be to lend you money.
So why does a hard credit check hurt your credit?
A number of hard credit checks in a short amount of time is often interpreted as a sign that you’re desperate for money—it may look like you’re either mismanaging the money you have or simply trying to accrue more debt without paying off the money you currently owe. It could make you seem risky—and your credit score is then lowered to reflect that risk.
If you need fast cash, then you’re likely only concerned about getting the money you need now and not letting a bunch of hard credit checks further lower your score. In these cases, a no credit check loan may seem like just what you need. But be careful!
How do No Credit Check Loans work?
So how can you borrow money without a credit check? You might find yourself considering a no credit check loan. A no credit check loan could be one of several different products, and some are safer than others, so you’ll want to do your research before signing any contract.
Many payday loans and title are no credit check loans. This means that the payday or title lender doesn’t perform a hard credit check (or maybe even a soft credit check). They don’t necessarily care about your creditworthiness because they know they’re going to get their money (and then some) back one way or another.
That’s because with a payday or a title loan product, your loan is secured with collateral. In the case of a payday loan, it’s your paycheck. In the case of a title loan, it’s your car title. If you can’t pay back the loan, the lender either cashes and keeps your paycheck or they take possession of your car!
If you’re not interested in losing your paycheck or your car, you’re probably looking for other types of no credit check loans. So, are there options?
Though rarer, there are installment loan products that don’t require a credit check. A no credit check installment loan can assess a borrower’s creditworthiness through means other than a traditional hard credit check.
What does this mean? A no credit check installment loan lender may consider your length of employment, your ability to repay the money you borrow, or other non-traditional criteria.
Borrowing money is a major decision and it should never be made quickly or without an understanding of the loan’s true cost and the impact it may have on your credit.
Related Resources
Glossary
In Depth
- The Truth About No Credit Check Loans | White Paper
- Meet Your Credit Character | eBook
- How to Protect Yourself From Payday Loans & Predatory Lenders | eBook